Monday, November 05, 2007
One of the big determiners of when real estate prices topped out was the balloon payments of the interest only loans. Adjustable rate mortgages have their own little built-in time bomb called the reset, when the mortgage rate adjusts. So, the graphic and the attached story talk about when this will happen.
As mortgage rates keep going up and up, more and more people will be abandoning their homes. A great number of these will happen by January 2009 (see linked story, though) and this will create even lower priced real estate.
So, yeah. If you haven't bought anything yet, you've got at least 14 months to wait.